Source: Business Insurance
Matthew Lerner September 06, 2019 Insured losses from Hurricane Dorian’s hit to the Caribbean will range between $1.5 billion and $3 billion, catastrophe modeler AIR Worldwide said Friday. The insured loss estimates for the Caribbean include damage to onshore residential, commercial and industrial properties and their contents, as well as automobiles; time element coverage, such as additional living expenses for residential properties, and business interruption for commercial properties that experience physical loss from direct and indirect sources; and storm surge, which is implicitly accounted for in the wind damage functions, according to Boston-based AIR. Grand Bahama and Abaco Island were devastated by Dorian, according to AIR. The modeler’s insured loss estimates for the Caribbean do not include loss to offshore properties, pleasure boats and marine craft, although losses for boats inside a building may be estimated if their replacement value is included as contents; losses to infrastructure; losses from hazardous waste cleanup, vandalism or civil commotion directly or indirectly caused by the event; demand surge; losses resulting from the compromise of existing defenses, such as levees; losses to uninsured properties; and other nonmodeled losses, including loss adjustment expenses.